Doing Business in Russia

Doing Business in Russia 19 - Overtime is permitted for some employee categories in specific circumstances, subject to certain conditions being fulfilled. In general, overtime should not exceed four hours in two successive days or 120 hours per year. Overtime is payable at the following rates: no less than 1.5 times the normal salary rate per hour for the first two hours, and no less than twice the normal rate for subsequent hours and for work on weekends and non-working days. Employees additionally have the right to demand additional days off as compensation for overtime. An employer does not have the right to require that an employee performs functions beyond those set out in his/her employment contract, unless business circumstances require otherwise, in which case the employer has the right to transfer the employee to a position in a different line of work for a period not exceeding one month. An employee can be assigned to a job requiring lower qualifications only subject to the employee's written consent. If the employer needs additional work performing by the employee, then the employee needs to provide his or her written consent and the relevant paperwork needs to be completed. Employees are entitled to 14 paid non-working days of public holidays and annual leave of at least 28 calendar days. For some categories of employee, the minimum annual paid leave established by legislation can exceed 28 calendar days. An employee is entitled to a sick leave allowance, paid by his/her employer and the Social Insurance Fund, based on the employee's salary. This allowance is between 60% and 100% of the employee's salary, depending on length of service. However, for 2016, this cannot be more than RUB 1,772.6 per day. Employers may pay temporary disability benefits at a higher rate at the employer's expense. Legislation also provides wages covering time spent travelling on behalf of work, for performance of the functions of a trade union officer, - - for appearing in court, for going to vote, and for fulfilling other state or social duties. In certain situations, legislation provides severance pay. Women are entitled to maternity leave for 70 calendar days (84 days if this is not the first child) prior to childbirth and 70 calendar days (86 days if there were complications with the birth, and 110 for the birth of twins, triplets, etc) after childbirth. Maternity leave is granted along with social insurance benefits, which are paid in amounts defined by statutory legislation. Regardless of her period of employment with a specific company, a woman is also entitled to annual paid vacation, which can be taken either before or immediately after maternity leave, as well as leave until the child's third birthday. During her maternity leave and until the child reaches one-and-a-half years of age, the woman is paid a social insurance allowance. Fathers, grandparents and other relatives are entitled to baby care leave only under certain circumstances. Employees have the right to organise trade unions and participate in the management of the company. Generally, trade unions represent the interests of the employees in their dealings with the employer, ensure that the terms of collective agreements are being complied with, and participate in resolving labour disputes in accordance with statutory legislation. Russian labour legislation provides a number of guarantees to employees, such as social security payments and benefits, severance pay, unused vacation pay, dismissal pay, overtime, etc. Employment contracts The Labour Code states that an employment contract should contain "essential" conditions (e.g. place of work, starting date, position, working hours, salary and benefits, other) and "additional" conditions (e.g. trial period, confidentiality, other). Moscow 2016 KPMG. All rights reserved.

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